Limited Brands Reports Third Quarter 2012 Earnings

              Limited Brands Reports Third Quarter 2012 Earnings

-- Provides Fourth Quarter And Raises Full Year 2012 Earnings Guidance --

-- Authorizes $250 Million Share Repurchase Program --

-- Declares Regular Quarterly Dividend --

PR Newswire

COLUMBUS, Ohio, Nov. 14, 2012

COLUMBUS, Ohio, Nov. 14, 2012 /PRNewswire/ --Limited Brands, Inc. (NYSE: LTD)
today reported 2012 third quarter results and increased its 2012 full-year
earnings guidance.

(Logo: http://photos.prnewswire.com/prnh/20020520/CLM001LOGO )

Third Quarter Results

Adjusted earnings per share for the third quarter ended Oct. 27, 2012 were
$0.26 compared to $0.25 for the third quarter ended Oct. 29, 2011. 2011
earnings per share included approximately $0.03 attributable to the third
party apparel sourcing business, which was sold in November 2011. Excluding
this amount from last year, adjusted earnings per share increased 18%.

Adjusted third quarter operating income was $197.4 million compared to
operating income of $186.1 million last year, and adjusted net income was
$75.6 million compared to $77.6 million last year. Adjusted results exclude
certain significant items as detailed below:

  oIn 2012 (totaling to a charge of $0.01 per share):

       oA pre-tax charge of $10.4 million, or $0.04 per share, related to La
         Senza store closures which were previously announced; and
       oA pre-tax gain of $12.7 million, or $0.03 per share, from cash
         distributions related to the company's Easton investments.

  oIn 2011:

       oAn income tax benefit, primarily due to the resolution of certain tax
         matters, of $16.7 million, or $0.06 per share.

Including the significant items above, reported third quarter earnings per
share were $0.25 compared to $0.31 last year; operating income was $186.9
million compared to $186.1 million last year; and net income was $73.4 million
compared to $94.3 million last year.

The company reported a comparable store sales increase of 5 percent for the
third quarter ended Oct. 27, 2012, compared to the third quarter ended Oct.
29, 2011. The company reported net sales of $2.050 billion for the third
quarter ended Oct. 27, 2012, compared to net sales of $2.173 billion last
year.

Third quarter 2011 net sales included $258.7 million attributable to the third
party apparel sourcing business, which was sold in November 2011.

At the conclusion of this press release is a reconciliation of reported to
adjusted results.

2012 Outlook

The company stated that it expects fourth quarter earnings of $1.62 to $1.77
per share. For 2012, the company increased its adjusted earnings per share
forecast to $2.78 to $2.93.

Share Repurchase Program and Regular Quarterly Dividend

The company's board of directors has authorized a $250 million share
repurchase program, which includes $49.6 million remaining under the previous
$500 million program. The company said it may repurchase shares from time to
time in the open market or through privately negotiated transactions,
depending on prevailing market conditions, alternative uses of capital and
other factors.

The company also declared its regular quarterly dividend of $0.25 per share
payable on Dec. 10, 2012 to shareholders of record at the close of business on
Nov. 26, 2012.

Earnings Call Information

Limited Brands will conduct its third quarter earnings call at 9 a.m. Eastern
time on Thursday, Nov. 15. To listen, call 1-866-583-6618 (international
dial-in number: 1-937-200-3978). For an audio replay, call 1-866-NEWS-LTD
(international replay number: 1-706-902-3452) or log onto
www.Limitedbrands.com. Additional third quarter financial information is also
available at www.Limitedbrands.com.

ABOUT LIMITED BRANDS:

Limited Brands, through Victoria's Secret, Pink, Bath & Body Works, La Senza
and Henri Bendel, is an international company. The company operates 2,626
specialty stores in the United States and its brands are sold in more than 700
company-operated and franchised additional locations world-wide. The
company's products are also available online at www.VictoriasSecret.com,
www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Limited Brands b-roll footage of stores is available through our online
newsroom.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995

Limited Brands, Inc. cautions that any forward-looking statements (as such
term is defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or the third quarter earnings call involve
risks and uncertainties and are subject to change based on various factors,
many of which are beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or implied in any
such forward-looking statements. Words such as "estimate," "project," "plan,"
"believe," "expect," "anticipate," "intend," "planned," "potential" and any
similar expressions may identify forward-looking statements. Risks associated
with the following factors, among others, in some cases have affected and in
the future could affect our financial performance and actual results and could
cause actual results to differ materially from those expressed or implied in
any forward-looking statements included in this press release or the third
quarter earnings call:

  ogeneral economic conditions, consumer confidence, consumer spending
    patterns and market disruptions including severe weather conditions,
    natural disasters, health hazards, terrorist activities, financial crises,
    political crises or other major events, or the prospect of these events;
  othe seasonality of our business;
  othe dependence on a high volume of mall traffic and the possible lack of
    availability of suitable store locations on appropriate terms;
  oour ability to grow through new store openings and existing store remodels
    and expansions;
  oour ability to successfully expand into international markets and related
    risks;
  oour independent licensees and franchisees;
  oour direct channel business;
  oour failure to protect our reputation and our brand images;
  oour failure to protect our trade names, trademarks and patents;
  othe highly competitive nature of the retail industry generally and the
    segments in which we operate particularly;
  oconsumer acceptance of our products and our ability to keep up with
    fashion trends, develop new merchandise and launch new product lines
    successfully;
  oour reliance on foreign sources of production, including risks related to:

       opolitical instability;
       oduties, taxes and other charges on imports;
       olegal and regulatory matters;
       ovolatility in currency exchange rates;
       olocal business practices and political issues;
       opotential delays or disruptions in shipping and related pricing
         impacts;
       othe disruption of imports by labor disputes; and
       ochanging expectations regarding product safety due to new
         legislation;

  ostock price volatility;
  oour failure to maintain our credit rating;
  oour ability to service our debt;
  oour ability to retain key personnel;
  oour ability to attract, develop and retain qualified employees and manage
    labor costs;
  othe inability of our manufacturers to deliver products in a timely manner
    and meet quality standards;
  ofluctuations in product input costs;
  ofluctuations in energy costs;
  oincreases in the costs of mailing, paper and printing;
  oclaims arising from our self-insurance;
  oour ability to implement and maintain information technology systems;
  oour failure to comply with regulatory requirements;
  otax matters; and
  olegal and compliance matters.

We are not under any obligation and do not intend to make publicly available
any update or other revisions to any of the forward-looking statements
contained in this press release or the third quarter earnings call to reflect
circumstances existing after the date of this press release or to reflect the
occurrence of future events even if experience or future events make it clear
that any expected results expressed or implied by those forward-looking
statements will not be realized. Additional information regarding these and
other factors can be found in "Item 1A. Risk Factors" in our 2011 Annual
Report on Form 10-K.



LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTEEN WEEKS ENDED OCTOBER 27, 2012 AND OCTOBER 29, 2011
(Unaudited)
(In thousands except per share amounts)
               2012                                   2011
               Reported     Adjustments  Adjusted     Reported     Adjustments  Adjusted
Net Sales      $         $       $         $         $       $   
               2,050,189        -   2,050,189    2,173,420        -   2,173,420
Cost of Goods
Sold,
    Buying &   (1,225,063)  10,437       (1,214,626)  (1,388,143)  -            (1,388,143)
    Occupancy
Gross Profit   825,126      10,437       835,563      785,277      -            785,277
General,
Administrative
and
    Store
    Operating  (638,178)                 (638,178)    (599,175)                 (599,175)
    Expenses
Operating      186,948      10,437       197,385      186,102      -            186,102
Income
Interest       (77,155)     -            (77,155)     (63,860)     -            (63,860)
Expense
Other (Loss)   17,603       (12,745)     4,858        (368)                     (368)
Income
Income Before  127,396      (2,308)      125,088      121,874      -            121,874
Income Taxes
Provision for  54,036       (4,588)      49,448       27,597       16,691       44,288
Income Taxes
Net Income    $       $       $       $       $        $     
               73,360        2,280      75,640       94,277       (16,691)    77,586
Net Income Per $                    $       $                    $     
Diluted Share    0.25                    0.26       0.31                    0.25
Weighted
Average Shares 294,386                   294,386      307,928                   307,928
Outstanding
See Notes to Consolidated Statements of Income and Reconciliation of Adjusted Results for
additional information.



LIMITED BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THIRTY NINE WEEKS ENDED OCTOBER 27, 2012 AND OCTOBER 29, 2011
(Unaudited)
(In thousands except per share amounts)
               2012                                   2011
               Reported     Adjustments  Adjusted     Reported     Adjustments  Adjusted
Net Sales      $         $       $         $         $       $   
               6,603,068        -   6,603,068    6,848,572        -   6,848,572
Cost of Goods
Sold,
    Buying &   (3,933,506)  13,237       (3,920,269)  (4,319,469)  -            (4,319,469)
    Occupancy
Gross Profit   2,669,562    13,237       2,682,799    2,529,103    -            2,529,103
General,
Administrative
and
    Store
    Operating  (1,884,050)  800          (1,883,250)  (1,932,645)  163,428      (1,769,217)
    Expenses
Operating      785,512      14,037       799,549      596,458      163,428      759,886
Income
Interest       (234,473)    -            (234,473)    (182,788)    -            (182,788)
Expense
Other (Loss)   19,041       (12,745)     6,296        232,868      (233,478)    (610)
Income
Income Before  570,080      1,292        571,372      646,538      (70,050)     576,488
Income Taxes
Provision for  228,513      (4,588)      223,925      155,897      62,456       218,353
Income Taxes
Net Income    $        $       $        $        $        $    
               341,567      5,880      347,447     490,641     (132,506)    358,135
Net Income Per $                    $       $                    $     
Diluted Share    1.15                    1.17       1.55                    1.13
Weighted
Average Shares 297,218                   297,218      317,067                   317,067
Outstanding
See Notes to Consolidated Statements of Income and Reconciliation of Adjusted Results for
additional information.



LIMITED BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME AND
RECONCILIATION OF ADJUSTED RESULTS
(Unaudited)

The "Adjusted Results" provided in the attached unaudited Consolidated
Statements of Income and Reconciliation of Adjusted Results are non-GAAP
financial measures and reflect the following:

Fiscal 2012

In the third quarter of 2012, adjusted results exclude the following:

  o$10.4 million ($10.4 million net of tax) of store closure costs at La
    Senza.
  oA $12.7 million pre-tax gain ($8.2 million net of tax), included in other
    income, from $13.4 million of cash distributions related to the company's
    Easton investments.

In the second quarter of 2012, adjusted results exclude the following:

  o$3.6 million ($3.6 million net of tax) of store closure costs at La Senza.

In the first quarter of 2012, there were no adjustments to results.

Fiscal 2011

In the third quarter of 2011, adjusted results exclude the following:

  oA $16.7 million tax benefit related to the favorable resolution of certain
    discrete income tax matters.

In the second quarter of 2011, adjusted results exclude the following:

  oA $147.1 million non-taxable gain, included in other income and expense,
    and associated pre-tax expense of $113.4 million, included in general,
    administrative and store operating expenses, associated with our
    charitable contribution of Express, Inc. common stock to The Limited
    Brands Foundation.

In the first quarter of 2011, adjusted results exclude the following:

  oAn $86.4 million pre-tax gain ($55.6 million net of tax), included in
    other income and expense, related to the sale of shares of Express, Inc.
    common stock.
  oA $50.0 million pre-tax expense ($31.2 million net of tax), included in
    general, administrative and store operating expenses, related to a pledge
    to The Limited Brands Foundation.
  oAn $11.0 million tax benefit primarily related to the favorable resolution
    of certain discrete income tax matters.

The Unaudited Adjusted Consolidated Statements of Income should not be
construed as an alternative to the reported results determined in accordance
with generally accepted accounting principles. Further, the Company's
definition of adjusted income information may differ from similarly titled
measures used by other companies. While it is not possible to predict future
results, management believes the adjusted information is useful for the
assessment of the ongoing operations of the Company. The Unaudited Adjusted
Consolidated Statements of Income should be read in conjunction with the
Company's historical financial statements and notes thereto contained in the
Company's quarterly reports on Form 10-Q and annual report on Form 10-K.

SOURCE Limited Brands, Inc.

Website: http://www.limitedbrands.com
Contact: Limited Brands: Investor Relations, Amie Preston, +1-614-415-6704,
apreston@limitedbrands.com or Media Relations, Tammy Roberts Myers,
+1-614-415-7072, extcomm@limitedbrands.com
 
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